MUMBAI: India’s foreign exchange reserves fell for a seventh straight week, dropping to $545.652 billion in the week to September 16, its lowest level since October 2, 2020, Reserve Bank of India’s weekly statistical supplement showed on Friday.
The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee amid a pressure caused majorly by global developments, had declined by $2.23 billion to $550.87 billion in the previous week.
Though the fall in reserves is partly due to valuation changes, analysts believe a large part of the fall has been on account of the Reserve Bank of India’s intervention in the currency market to prevent the rupee from depreciating more sharply against dollar.
A dip was also noticed in the foreign currency assets (FCA), a major component of the overall reserves, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI) on Friday.
The FCA decreased by $4.698 billion to $484.901 billion during the reporting week, the apex bank said.
Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Meanwhile, the rupee steadied by the close of trading on Friday after a turbulent week, tumbling past 81 per dollar to touch a record low earlier in the session, prompting RBI to intervene.
The country’s reserve position with the IMF was down by $31 million to $4.88 billion in the reporting week, the data showed.